System and method for using automatic bidding to promote lower reserve price in active auctions

ABSTRACT

A method and system for using automatic bidding to promote lower reserve prices in active auctions are described. While an auction is ongoing, the system prompts the seller to reduce the reserve price without notice to prospective bidders and enters new bids generated by the seller or the system to promote the auction and attempt to bring it to a successful sale.

RELATED APPLICATIONS

This application claims benefit of priority to Provisional U.S. PatentApplication No. 61/852,469, filed Mar. 15, 2013; and to Provisional U.S.Patent Application No. 61/852,062, filed Mar. 15, 2013; both of theaforementioned priority applications being hereby incorporated byreference in their respective entirety for all purposes.

TECHNICAL FIELD

Examples described herein relate to online markets, and morespecifically, to a system and method for using automatic bidding topromote lower reserve prices in active auctions.

BACKGROUND

Numerous online auction forums exist that enable consumers and sellersto transact for various kinds of items, such as collectibles,electronics and other goods or services.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a block diagram illustrating an online auction system in whichautomatic bidding is used to promote lower reserve pricing, according toan example.

FIG. 2A is a flow chart illustrating a method for using automaticbidding to promote lower reserve pricing, according to an example.

FIG. 2B is a flow chart illustrating a method of reserve price loweringon a seller dashboard, according to an example.

FIG. 3 illustrates a sample dashboard for displaying information about aseller's auctions, including current reserve price and suggestions forlower reserve prices.

FIG. 4 illustrates a sample user interface presentation corresponding toan active auction.

FIG. 5 is a block diagram that illustrates a computer system upon whichembodiments described herein may be implemented.

DETAILED DESCRIPTION

Examples described herein include an online auction forum that promotesan event sequence in which a seller is prompted to lower a reserveprice, in combination with an alias bid made on behalf of the seller.The event sequence is used to promote a genuine bid that surpasses thelowered reserve.

According to some embodiments, an online auction forum is hosted inwhich bids originating from an auction host or seller are combined withthe lowering of a reserve price in order to promote bidding activity foran item being auctioned. By creating this sequence of auction activity,auctions with little or no activity may be seen as more attractive toprospective bidders, increasing the likelihood of a successful sale.Similarly, lowering the reserve price reduces the size of a bid requiredto win the auction, thereby also increasing the likelihood of theauction's success.

In an example, for each concurrent online auction associated with aseller, an interactive presentation is generated and communicated toprospective bidders over a network. Each auction has an associatedreserve price selected by the seller which remains undisclosed to theprospective bidders. While the auction has not yet reached this reserveprice, the online auction system can operate to generate prompts forsuggested reserve prices, which are communicated to the seller. In oneexample, a seller dashboard lists the new reserve price suggestions andprompts the seller for action. Furthermore, the seller may initiateprogrammatic or seller bids up to the new selected reserve price, andthe true source of these bids is hidden so that prospective bidders areled to believe the bids were placed by other prospective bidders. In oneexample, the programmatic or seller bid is an amount such that the sumof the programmatic or seller bid and the auction's minimum bidincrement is equal to or greater than the new reserve price, thusensuring that the next bid by one of the prospective bidders will atleast meet the new reserve price.

In an example, the auction system generates a virtual personalityassociated with the programmatic or seller bids who appears toprospective bidders to be a legitimate bidding account.

In an example, the seller selects the programmatic or seller bid.Alternatively, it may be programmatically generated and/or set to bemade upon activation of a preset trigger chosen by the seller or theauction system. This trigger corresponds to, for example, biddingactivity, a scheduled event, or an elapsed period of time.

Among other benefits, examples described herein achieve a technicaleffect by providing an enhanced user interface and related functionalityfor enabling a seller to complete an auction. An interface enables, forexample, a seller to trigger a tandem action in which the reserve of theauction is lowered, while bidding activity is simulated. Still further,an interface is provided that enables a seller to manage multipleauctions by viewing reserve price, triggering tandem actions, andviewing probabilities of success at one time. The collection of suchinformation and input functionality in one interface further achievesthe technical effect of enabling sellers to make better and moreinformed decisions for completing an auction in progress.

One or more embodiments described herein provide that methods,techniques and actions performed by a computing device are performedprogrammatically, or as a computer-implemented method. Programmaticallymeans through the use of code, or computer-executable instructions. Aprogrammatically performed step may or may not be automatic.

One or more embodiments described herein may be implemented usingprogrammatic modules or components. A programmatic module or componentmay include a program, a subroutine, a portion of a program, a softwarecomponent, or a hardware component capable of performing one or morestated tasks or functions. As used herein, a module or component canexist on a hardware component independently of other modules orcomponents. Alternatively, a module or component can be a shared elementor process of other modules, programs or machines.

Furthermore, one or more embodiments described herein may be implementedthrough the use of instructions that are executable by one or moreprocessors. These instructions may be carried on a computer-readablemedium. Machines shown or described with figures below provide examplesof processing resources and computer-readable mediums on whichinstructions for implementing embodiments of the invention can becarried and/or executed. In particular, the numerous machines shown withembodiments of the invention include processor(s) and various forms ofmemory for holding data and instructions. Examples of computer-readablemediums include permanent memory storage devices, such as hard drives onpersonal computers or servers. Other examples of computer storagemediums include portable storage units, such as CD or DVD units, flashor solid state memory (such as carried on many cell phones and consumerelectronic devices) and magnetic memory. Computers, terminals, networkenabled devices (e.g., mobile devices such as cell phones) are allexamples of machines and devices that utilize processors, memory, andinstructions stored on computer-readable mediums. Additionally,embodiments may be implemented in the form of computer programs.

Auction Architecture

FIG. 1 illustrates an online auction system 100 in which programmatic orseller bidding is used to promote lower reserve pricing according to anexample. The system 100 such as shown by an example of FIG. 1 can beimplemented in connection with an online auction service for any type ofcommercial item, such as, for example, real property (e.g., homes,real-estate notes, commercial property), motor vehicles (e.g.,automobiles, motorcycles, boats), consumer electronics, collectibles,clothing, or services to be performed.

In an example of FIG. 1, system 100 includes functionality that can beimplemented by processes, logical components and/or modules. In anexample of FIG. 1, system 100 includes a bidder interface 112,transaction logic 120, an auction manager 130, and an auction database140. The auction database 140 can retain database records 141 thatidentify items that are to be auctioned and/or items which areundergoing or have completed an auction.

As shown by an example of FIG. 1, multiple instances of transactionlogic 120 can be implemented at a given time in order to conduct anauction and to progress the auction towards completion. The transactionlogic 120 interacts through the auction manager 130 to access auctiondatabase 140 in order to receive information from records 141identifying items to be auctioned or currently being auctioned. Thetransaction logic 120 can include functionality to (i) initiate anauction, (ii) advance the auction towards completion, and (iii) end orcomplete the auction when certain conditions are satisfied (e.g., aftercompletion of time and/or satisfaction of completion rules). In additionto receiving and processing bids 111, the transaction logic 120 providesan auction update 113 to the bidders that are viewing or participatingin a particular auction. The auction update 113 can include informationsuch as a current price for the item being auctioned, an amount of timeremaining in the auction, and/or comments from other users. Otherinformation that can be updated by the transaction logic 120 andpublished through the bidder interface 112 include identifiers foractive bidders, recent bid amounts, bid increment (which represents theminimum amount a new bidder must bid over the current top bid), commentsfrom other users, and information from other auctions that may be invarious states (e.g., pre-auction versus in-progress). The auctionupdates 113 are published through the bidder interface 112 to thepopulation of users.

In an example of FIG. 1, the auction manager 130 coordinates theprogress of multiple auctions. In particular, the auction manager 130triggers transaction logic 120 to initiate individual auctions so thatindividual auctions progress towards completion in accordance with a setof auction rules 133. In this way, the auction manager 130 provides theframework and implements a set of auction rules 133 by which theindividual auctions are conducted. The auction manager 130 interfaceswith the auction database 140 in order to retrieve database records 141.Each database record can identify one or multiple items for auction. Inan example of FIG. 1, auction manager 130 initiates instances oftransactional logic 120, and communicates auction rules 133 to thetransaction logic 120 in order to progress the corresponding auctionstowards completion. The auction rules 133 can also include completionrules, which specify rules or conditions that affect the timer 124maintained by each auction. In this way, the completion rules canspecify when a particular auction is to be extended based on theoccurrence of a designated event. In one example, completion rules causecorresponding transaction logic 120 to extend an auction in the event anincoming bid is received in a given time frame. For example, thecompletion rules may specify that an auction will end at a given time,unless a bid is received in the last minute (or other duration), inwhich case the auction is extended. In addition, the timer 124 may beused to track triggers used by programmatic bidding component 160 suchas elapsed time and scheduled events.

At a given instance, the records 141 of the auction database 140represent any one of (i) ongoing or current auctions, (ii) prior orarchived auctions, and/or (iii) future auctions. Accordingly, each ofthe records 141 can be associated with a seller identifier, and an itemof merchandise (e.g., a parcel of land, a home, merchandise, etc.) aswell as auction status. The auction status can correspond to whether theauction is live (e.g., currently ongoing), completed, or upcoming, andongoing auctions can include a time remaining. Other status informationcan include the highest bid, history of bids, the identifier of eachbidder, and information about a reserve price. As described by numerousexamples, the reserve price can be recorded and tracked, but publicationof the reserve price can be hidden. However, from auctions may includeindications as to whether there is a reserve, and/or whether the reserveprice has been met.

The user interface 110 can include functionality for supporting bothseller and bidder activities. In particular, the user interface 110 caninclude a bidder interface component 112 for supporting bidderactivities, and a seller interface component 114 for supporting selleractivities. According to embodiments, the seller activities supportedthrough the user interface 110 can include (i) listing an auction,including designating parameters such as reserve price; (ii) adjustingauction parameters, including the reserve price, once the auction isongoing; and (iii) generating seller bids, subject to auction rules 133and conditions.

In some implementations, the seller interface component 114 is providedwith or coupled to the dashboard component 144. The dashboard component144 uses a seller identifier to retrieve from the auction database 140 aset of records 147 which are specific to the particular seller. Thedashboard component 144 can generate a dashboard 155 that displays forthe seller a variety of information, including the auction identifier,the status of the auction, the highest bid receipt for the particularauction, whether the reserve price is met or not, and other informationas described by examples provided herein. As described her variety ofexamples, the dashboard component 144 can further enable functionalitythrough the dashboard 155 for enabling the seller to lower a reserveprice for a particular auction, and also to generate one or moreprogrammatic or seller bids, provided that the bids generated or lessthan the most recent reserve price specified by the seller. The sellerdashboard component 144 can be implemented as, for example, a widget oran application, so as to generate the dashboard 155 as a user interface.An example of a seller dashboard 155 is shown by FIG. 3.

The bidder interface component 112 includes functionality for enablingbidders to view and participate in an in-progress auction. Accordingly,the bidder interface 112 can include functionality for enabling a bidderto specify a bid and to monitor in real-time the current value of anitem being auctioned. The bidder interface 112 can be provided as, forexample, a webpage that includes functional elements for enabling theusers to provide input (e.g., bids) and to view real-time updates for anauction that is in progress. In variations, the bidder interface 112 canbe provided as application content, such as through a display or panelof a network-enabled application executed on a computer, mobile device,or other similar hardware.

In some embodiments, system 100 enables programmatic or seller biddingwhen certain conditions are present in an auction in progress.Programmatic or seller bidding refers to a bid made by or on behalf ofthe seller under the guise of an interested bidder. In oneimplementation, a programmatic bidding component 160 providesfunctionality for generating programmatic or seller bids 151 for a givenauction. Programmatic or seller bids 151 can, for example, becommunicated to the auction manager 130, which in turn displays it tothe participants of a given auction via the user interface 110. Theprogrammatic or seller bids 151 can be triggered by, for example,default settings or parameters of system 100, as well as through input158 from the seller made through, for example, the dashboardpresentation 155 and/or seller interface component 114. In one example,programmatic bidding component 160 can generate an alias, and specify abid for a given auction that is subject to auction rules 133. Inparticular, the auction rules 133 can specify that the programmatic orseller bid 151 can only be generated for amount that is less than theexisting reserve price 143. In variations, the auction rules 133 onlyallow programmatic or seller bids 151 for certain types of auctions orauction settings.

In variations, programmatic bidding may be subjected to manual ortriggered input from the seller. Thus, for example, the seller maymanually enter bids for himself on the seller dashboard 155. In oneimplementation, the programmatic bidding component 160 communicatesprogrammatic or seller bid 151 to the auction manager 130. Auctionmanager 130 can incorporate the programmatic or seller bid 151 into thetransaction logic 120, where it may be communicated via update 113 tobidder interface 112. To prospective bidders, the programmatic or sellerbid 151 appears as a genuine bid that raises the current auction priceto a value that is closer to the reserve. In one example, theprogrammatic bidding component 160 generates a new virtual personalityaccount associated with the programmatic or seller bid 151 or uses apreviously created virtual personality account. In this way, prospectivebidders believe that the programmatic or seller bid 151 was placed byanother bidder. In order to generate the programmatic or seller bid 151,programmatic bidding component 160 may receive auction information,including event information 159 which identifies specific events orconditions where such programmatic bids are permitted. For example,event information 159 may indicate the most recent reserve price 143,highest bid 111, and triggers from timer 124, which can be prerequisitesbefore the programmatic or seller bid 151 is generated. Additionally,event information 159 can indicate information about bid activity,including lack of bidding activity. For example, if no bidding activityhas been received for the auction or if the time between the lastgenuine bid has exceeded a threshold, event information 159 can causeprogrammatic bidding component 160 to generate the programmatic orseller bid 151. In addition, the programmatic or seller bid 151 can becommunicated to the seller such as on the seller dashboard 155 using theseller notification module 162, for example to wait on seller approval.

Some examples described herein facilitate a tandem set of operations inwhich the seller is prompted to lower the reserve price 143, coupledwith generation of a programmatic or seller bid 151, in order to enablea next bid from one of the bidders that exceeds the new reserve priceand potentially ends the auction with the transaction being completed.The tandem set of operations can be generated in response topre-determined triggers, such as the top bid of the auction approachingsome threshold range of the reserve (e.g., top bid is x bid incrementsfrom the reserve price, where x=2 or more), passage of time (e.g.,auction nearing end and reserve not met), or some programmatic decisionthat deems the auction as not likely to succeed (e.g., highest bid willnot reach reserve price). As described with some examples, the sellercan alternate the reserve price for a given auction using a dashboard155, provided through the dashboard component 144 and/or the sellerinterface component 114.

Still further, in some embodiments, a reserve price analysis component170 is used to implement the tandem operation by generating a sellerprompt (suggested reserve price 171) to lower the reserve price 143 to aparticular amount. The seller prompt can be communicated to the sellerthrough the seller interface component 114 and/or dashboard 155. Inresponse, the seller can lower the reserve for the auction through, forexample, seller interface component 114 and/or dashboard component 144.The particular amount suggested for the reserve price can be based on aprice that will generate a next genuine bid from a bidder that will pushthe transaction price above the reserve price. In determining the lowersuggested reserve price 171, reserve price analysis component 170 takesinto consideration the current bid increment as well as the currenthighest bid. By way of example, if the reserve price is $100 and thehighest bid is $80 with bid increments of $5, the suggested lowerreserve price may be $90, followed by a programmatic or seller bid of$85 to generate bidding activity that achieves the lower reserve price.

In still another embodiment, the reserve price analysis component 170models or anticipates a high (or highest) reserve price for a givenauction that is likely to yield a genuine bid that results in the saleof the item. In one implementation, reserve price analysis component 170monitors the bidding activity of a given auction. Additionally, thereserve price analysis component 170 works in tandem with theprogrammatic bidding component 160 through the auction manager 130 toprocess the programmatic or seller bids 151. The reserve price analysiscomponent 170 can utilize qualitative and quantitative metrics such asbidding activity (e.g., number of bidders, number of bids, number ofregistered bids, number of page views), historical information about thepast transactions (e.g., same products, same type of products), andprior seller information (e.g., seller experience level) in order todetermine a model reserve price. In one embodiment, multiple reserveprices are determined with varying statistical probabilities of asuccessful auction. In calculating the suggested reserve price 171 andassociated statistical probabilities, the reserve price analysiscomponent 170 can interface with other databases, for example, a sellerprofile store 173 or a historical transaction store 175 (e.g., listinginformation about past transactions for a given item or type of item).The reserve price analysis component 170 can calculate the suggestedreserve price 171 and/or provide probabilities for one or more suggestedreserve prices by identifying comparable assets (e.g., real property ofthe same price range in the same geographic region, comparable realproperty items, etc.) and then determining the sale price for suchassets. Still further, in some variations, the reserve price analysiscomponent 170 can obtain bidding history for past transactions ofcomparable assets to determine how often in recent past a particularreserve price was exceeded. Still further, the reserve price analysiscomponent 170 can obtain evaluation of an asset using, for example, avaluation service, and then estimate reserve price based on thevaluation. For example, a reserve price that is 75% of an estimatedvaluation for a real property asset can be marked as having a highprobably of success, while a reserve price that exceeds the estimatedvalue of the asset can be marked as having a low probability of success.Many such variations such as described can be provided in order todetermine probabilities for a particular reserve price, or set ofreserve prices.

Methodology

FIG. 2A illustrates a method for implementing a sequence of loweringreserve pricing and initiating programmatic or seller bidding in orderto promote bidding activity and auction closing, according to anembodiment. While operations of the method 200 are described below asbeing performed by specific components, modules or systems of the system100, it will be appreciated that these operations need not necessarilybe performed by the specific components identified, and could beperformed by a variety of components and modules, potentiallydistributed over a number of machines. Accordingly, references may bemade to elements of system 100 for the purpose of illustrating suitablecomponents or elements for performing a step or sub step beingdescribed. Alternatively, at least certain ones of the variety ofcomponents and modules described in system 100 can be arranged within asingle hardware, software, or firmware component. It will also beappreciated that some of the steps of this method may be performed inparallel or in a different order than illustrated.

With reference to an example of FIG. 2A, an online auction is conductedwith a hidden reserve, through for example, a system 100 as described inFIG. 1 (204). The auction can be conducted by way of generating aninteractive presentation (e.g., web page) on which auction data,containing records 141 of database 140, is provided and updated in realtime. In particular, information to be updated in real time is based onthe interactivity, seller activity, and/or auction host actions. Forexample, the online auction can be generated as a webpage that isdisplayed to prospective bidders as the user interface 110. Each auctioncan be associated with a current price (e.g., opening bid or highestbid), a bid increment, information about an item that is subject to thetransaction, and other information such as bidding history, sellerprofile etc. The bid increment presents the minimum amount a new biddermust bid over the current top bid and is displayed for prospectivebidders to see on the interactive presentation. In some implementations,a reserve price is also implemented for online auction. The reserveprice 143, however, may be known only to the seller, so as to be kepthidden from bidders.

A programmatic determination is made as to whether a trigger exists forperforming a tandem operation of reserve lowering and seller bidding isto be performed (208). The trigger can be predicated on the reserveprice of the auction being at least two bid increments above the topbid. In one example, the determination is made as a continuous orrepetitive process, while in some variations, additional auctionconditions or processes, such as bidding activity (e.g., number bidders,number of page views, number of registered users, or number of bidsreceived) trigger a reserve price check. If the reserve price for theauction has already been met, the auction proceeds to completion withthe highest bidder being the auction winner (230).

Otherwise, operations can be implemented to facilitate the auctionprogressing to completion at above the reserve price. The operationsinclude (i) prompting the user to lower the reserve price (210), and/or(ii) generating programmatic or seller bids (220). In oneimplementation, the reserve price analysis module 170 generates one ormore reserve price suggestions 171. The reserve price suggestions 171can be generated in response to, for example, a programmatic detectionthat the bidding activity has ceased or slowed. As an addition orvariation, the reserve price suggestions 171 can be generated usingqualitative or quantitative metrics such as bidding activity, historicalinformation about the past transactions (e.g., same products, same typeof products), and prior seller information (e.g., seller experiencelevel). It will be appreciated that auctions with a greater amount ofbidding activity are more likely to meet a higher reserve price thanones with very little activity. Furthermore, past transactions for thesame item or similar (e.g., a house of the same size in the sameneighborhood) are likely to fetch similar prices at auction when otherfactors are taken into consideration. Finally, a seller with moreexperience is more likely to be able to choose his or her own reserveprice more accurate and thus the initial reserve price 143 should begiven more weight in that case. The same user metrics (211) are alsoused to compute probabilities of the auction reaching each of thesuggested reserve prices 171.

The suggested reserve prices can be communicated to the seller (212).For example, the reserve prices can be communicated to the seller aspart of the dashboard 155. In one variation, the suggested reserve price171 includes qualitative or quantitative information about one or moresuggested reserve prices 171. For example, statistical analysis canindicate what reserve price is likely to be met, given certaininformation is present in an ongoing auction. In one example, the selleris notified on the seller dashboard 155, which displays the suggestedreserve prices 171 and probabilities. In another embodiment, the sellernotification module 162 also communicates with the seller via othermechanisms, such as e-mail, text message, or an applicationnotification. Once notified, the system 100 may wait for sellerselections (216). For example, the seller may choose one of thesuggested reserve prices 171, choose a different reserve price on his orher own, or leave the reserve price as it is. In another example, theauction manager 130 enters a new reserve price for the auctionautomatically after a specified condition is met, which may be set inadvance by the seller.

Once the reserve price is lowered, one embodiment provides forprogrammatic or seller bids (220). Some embodiments specifically selecta programmatic bid which is selected to push a next genuine bid over thelowered reserve (222). The selected highest programmatic bid can bedetermined from the lowered reserve price (223) and the bid increment(225). For example, the selected bid can be equal to the lowered reserveprice less one bid increment. If multiple bid increments exist betweenthe highest bid and the selected value of the programmatic bids,multiple programmatic bids are generated by the designated incrementuntil the selected bid is reached.

Accordingly, in one implementation, programmatic bidding component 160determines whether and how many programmatic bids 151 to generate onbehalf of the seller. This step may be done automatically, or in someexamples, be directed by the seller (e.g., from the seller dashboard155).

With further reference to FIG. 1, seller or programmatic bids 151 aregenerated by the programmatic bidding component 160 and sent to theauction manager 130. In one example, the programmatic bidding component160 generates a new virtual personality account associated with theprogrammatic or seller bid 151 or uses a previously created virtualpersonality account. In this way, prospective bidders believe that theprogrammatic or seller bid 151 was placed by another bidder and not theseller or auction system 100. It will be appreciated that this identityobfuscation may be implemented in other ways that do not involve virtualaccounts.

The programmatic or seller bids 151 can increase the top bid on theauction to an amount not greater than the reserve price. In oneembodiment, the final programmatic or seller bid 151 raises the top bidto an amount no more than one bid increment 225 below the newly-selectedreserve price (or the original reserve price 143 if the seller chose notto increase it). For example, if the bid increment is $5000, the currentreserve price is $200,000, and the current bid price is $180,000, thereserve price analysis component 170 may suggest a lower reserve priceof $190,000. In combination with the seller lowering the reserve price,the programmatic bidding component 160 generates a programmatic orseller bid 151 that increases the current bid price to $185,000. Thiscreates a situation where the next bid from a prospective bidder meetsthe lowered reserve price and the auction will be successful.

Whether or not programmatic or seller bids 151 are created, the system100 may still lower the reserve price on the auction either at theseller's selection or automatically. In one example, programmatic orseller bid 151 is selected such that it is two bid increments 225 belowthe reserve price 143, and the seller is prompted to reduce the reserveprice by one bid increment 225. Similarly to above, this also creates asituation where the next bid from a prospective bidder meets the loweredreserve price and the auction will be successful.

FIG. 2B illustrates a method of reserve price lowering on a sellerdashboard, according to an embodiment. While operations of the method250 are described below as being performed by specific components,modules or systems of the system 100, it can be appreciated that theseoperations need not necessarily be performed by the specific componentsidentified, and could be performed by a variety of components andmodules, potentially distributed over a number of machines. Accordingly,references may be made to elements of system 100 for the purpose ofillustrating suitable components or elements for performing a step orsub step being described. Alternatively, at least certain ones of thevariety of components and modules described in system 100 can bearranged within a single hardware, software, or firmware component. Itcan also be appreciated that some of the steps of this method may beperformed in parallel or in a different order than illustrated.

With reference to an example of FIG. 2B, the dashboard component 144interfaces with auction database 140 to retrieve database records 141corresponding to a set of auctions in progress (255) that belong to theseller (254). These database records 141 include real-time informationsuch as the current highest bid, reserve price, and an indicator as tothe current bid source, which are all presented, among other things, tothe seller on the seller dashboard 155 (258). The dashboard can includethe current bid (259), reserve price (260) and/or current bid source(261). The current bid source can indicate to the seller whether thecurrent bid price was placed by an actual bidder, or whether the currentbid source is a seller or programmatic bid 151 placed by either theseller or the programmatic bidding component 160 on the seller's behalf.Through this indication, the seller can more efficiently determinewhether adjusting the reserve price 143 or placing programmatic orseller bids 151 might be helpful in increasing the likelihood of asuccessful auction outcome for each of the seller's ongoing auctions. Tofurther aid in this, in one example, the real-time auction informationis color-coded to differentiate auctions that have reached their reserveprice 143 from those that have not. In addition, the current bid sourcemay be color-coded to indicate whether the current bid price was placedby an actual bidder or is a seller or programmatic bid 151. In a longlist of ongoing auctions, this can allow the seller to more efficientlyfocus on auctions that may require attention to result in a successfulsale.

In one embodiment, operations can be implemented to facilitate theauction progressing to completion at above the reserve price. Theoperations include (i) generating reserve price suggestions (262) and(ii) generating associated reserve price probabilities (266) forpresentation to the seller on the seller dashboard 155. In oneimplementation, the reserve price analysis component 170programmatically determines the reserve price suggestions andprobabilities using statistical analysis on metrics calculated from aseller profile (267), transaction history for the item and type of item(268), and bidding activity (269).

Once calculated, one or more suggested reserve prices and associatedreserve price probabilities of success can be displayed to the seller(270), for example on the seller dashboard 155. In one embodiment, thesuggested reserve prices are displayed (271). As a variation, reserveprice probabilities are displayed (273). The reserve price probabilitiesare color-coded for the seller's convenience. In addition, the sellerdashboard 155 may provide functionality for the seller to select one ofthe suggested reserve prices 171 for each ongoing auction.

Dashboard Example

FIG. 3 illustrates an example presentation of a seller dashboard. Theseller dashboard 300 can, for example, illustrate an implementation ofthe dashboard 155 (see FIG. 1) for displaying real-time informationabout a seller's auctions, including an asset identifier, current topbid, number of bids placed, auction end time, current reserve price 143(see FIG. 1), and suggestions for lower reserve price with correspondingprobabilities of success. The seller dashboard 300 can display thereserve state of various auctions for a given seller. If the state ofthe auction is that the reserve price is not met, then the dashboarddisplays a suggestion to lower the reserve price, or even the suggestedlower prices, in the embodiment illustrated. A seller can optionallyinteract with the seller dashboard 300 to lower the reserve price.

In one example, the seller dashboard 300 color codes each asset that theseller has offered. The color coding is based on the state of the asset,specifically as it relates to the reserve price. A change in the assetprice can also affect the state and the color coding.

In addition, the seller dashboard 300 includes functionality for sellersto create programmatic or seller bids 151 in order to promote theirauctions and lower reserve prices. The size of these programmatic orseller bids 151 may be chosen by the seller, recommended by theprogrammatic bidding component 160 (see FIG. 1), or enteredautomatically at the seller's behest in some situations.

Furthermore, the seller dashboard 300 indicates whether the current topbid was placed by a real bidder or is a programmatic or seller bid 151.In some examples, the seller dashboard 300 also displays a list ofprevious bids and their statuses as real or promotional bids. Thisinformation may be used by the system 100 or the seller to decidewhether to place more programmatic or seller bids 151 or lower thereserve price 143.

Auction Example

FIG. 4 illustrates a sample user interface 400 corresponding to anactive auction display of a listing of an item for sale 400. This userinterface 110 may be implemented, for example, as a web page on theInternet, an application for a personal computer, or an application on amobile or tablet device. In describing a user interface 400, referencemay be made to elements of system 100 for purpose of illustratingsuitable components for implementing and utilizing the user-interface.The user-interface 400 provides an example of user interface 110, for asystem such as shown with FIG. 1.

In one embodiment, when a user requests to view an item, transactionlogic 120 interfaces with the auction database 140 through auctionmanager 130 in order to retrieve relevant details about the auction todisplay to the user. For example, the system 100 displays informationdescribing the auction such as a picture, location, and itemidentification number as can be seen on FIG. 4. Furthermore, the system100 displays real-time information about the state of the auction,including a timer for when the auction ends in one example. The currentbid 459 indicates the highest price that has been currently bid, andusers who are not the seller of the item will not know whether this bidwas placed by another buyer or is a programmatic or seller bid 151. Inaddition, bidders and prospective bidders will not see the reserve price443 displayed on the user interface 400. In some implementations, theymay see an indication of whether or not the hidden reserve price 443 hasbeen met or not. The bidders can place a next bid that is the currentbid 459 plus the bid increment. With reference to FIG. 1, this biddingis handled by the bidder interface component 112 and transmitted to theauction manager 130 by transaction logic 120.

In one implementation, the seller can lower the reserve price throughinteraction with the user interface 400. The bidders will not know theseller lowered the reserve price 443. Still further, in oneimplementation, once the reserve price is lowered, a programmatic orseller bid is generated that increases the current bid 459, providedthat the new value of the current bid does not exceed the reserve bid443. This tandem action can occur to increase the chance that thereserve price is met.

Computer System

FIG. 5 is a block diagram that illustrates a computer system upon whichembodiments described herein may be implemented. For example, in thecontext of FIG. 1, system 100 may be implemented using one or moreservers such as described by FIG. 5.

In an embodiment, computer system 500 includes processor 504, memory 506(including non-transitory memory), storage device 510, and communicationinterface 518. Computer system 500 includes at least one processor 504for processing information. Computer system 500 also includes the mainmemory 506, such as a random access memory (RAM) or other dynamicstorage device, for storing information and instructions to be executedby processor 504. Main memory 506 also may be used for storing temporaryvariables or other intermediate information during execution ofinstructions to be executed by processor 504. Computer system 500 mayalso include a read only memory (ROM) or other static storage device forstoring static information and instructions for processor 504. Thestorage device 510, such as a magnetic disk or optical disk, is providedfor storing information and instructions. The communication interface518 may enable the computer system 500 to communicate with one or morenetworks through use of the network link 520 and any one of a number ofwell-known transfer protocols (e.g., Hypertext Transfer Protocol(HTTP)). Examples of networks include a local area network (LAN), a widearea network (WAN), the Internet, mobile telephone networks, Plain OldTelephone Service (POTS) networks, and wireless data networks (e.g.,WiFi and WiMax networks).

Embodiments described herein are related to the use of computer system500 for implementing the techniques described herein. According to oneembodiment, those techniques are performed by computer system 500 inresponse to processor 504 executing one or more sequences of one or moreinstructions contained in main memory 506. Such instructions may be readinto main memory 506 from another machine-readable medium, such asstorage device 510. Execution of the sequences of instructions containedin main memory 506 causes processor 504 to perform the process stepsdescribed herein. In alternative embodiments, hard-wired circuitry maybe used in place of or in combination with software instructions toimplement embodiments described herein. Thus, embodiments described arenot limited to any specific combination of hardware circuitry andsoftware.

Although illustrative embodiments have been described in detail hereinwith reference to the accompanying drawings, variations to specificembodiments and details are encompassed by this disclosure. It isintended that the scope of embodiments described herein be defined byclaims and their equivalents. Furthermore, it is contemplated that aparticular feature described, either individually or as part of anembodiment, can be combined with other individually described features,or parts of other embodiments. Thus, absence of describing combinationsshould not preclude the inventor(s) from claiming rights to suchcombinations.

What is claimed is:
 1. A method for conducting an online auction, themethod being implemented by one or more processors and comprising: (a)generating an interactive presentation corresponding to the onlineauction, the interactive presentation being communicated to one or moreprospective bidders over a network; (b) maintaining a reserve price forthe online auction, the reserve price being (i) selected by a seller,and (ii) undisclosed to the one or more prospective bidders; (c) whilethe auction is ongoing, prompting the seller to reduce the reserve pricewithout notice to the one or more prospective bidders; and (d) while thetop bid of the auction is below the reserve price, generating, on theinteractive presentation, one or more new bids that originates from asource other than one of the prospective bidders, the one or more newbids updating the top bid of the auction to be an amount such that a sumof the updated top bid and the auction's bid increment satisfies thereserve price.
 2. The method of claim 1, further comprisingprogrammatically selecting the reserve price to be reduced to an amountthat is one bid increment greater than a next new bid that is one bidincrement higher than the top bid.
 3. The method of claim 1, wherein thesource of the new bid is either the seller or a host of the onlineauction.
 4. The method of claim 1, further comprising generating avirtual personality, then displaying, on the interactive presentation,at least one of the one or more new bids as originating from the virtualpersonality.
 5. The method of claim 1, wherein (d) is performedresponsively to (c) being performed.
 6. The method of claim 1, wherein(c) is performed responsively to (d) being performed
 7. The method ofclaim 1, wherein the new bid is communicated upon activation of atrigger.
 8. The method of claim 7, wherein the trigger corresponds to abidding activity, a scheduled event, or an elapsed period of time.
 9. Asystem for conducting an online auction, the system comprising: a memorythat stores instructions; one or more processors that use theinstructions stored in the memory to: generate an interactivepresentation corresponding to the online auction, the interactivepresentation being communicated to one or more prospective bidders overa network; maintain a reserve price for the online auction, the reserveprice being (i) selected by a seller, and (ii) undisclosed to the one ormore prospective bidders; while the auction is ongoing, prompt theseller to reduce the reserve price without notice to the one or moreprospective bidders; and while a top bid of the auction is below thereserve price, generate, on the interactive presentation, one or morenew bids that originates from a source other than one of the prospectivebidders, the one or more new bids updating the top bid of the auctionsuch that a sum of the updated top bid and the auction's bid incrementsatisfies the reserve price.
 10. The system of claim 9, wherein the oneor more processors reduce the reserve price to an amount that is one bidincrement greater than a next new bid that is one bid increment higherthan the top bid.
 11. The system of claim 9, wherein the one or moreprocessors generate the one or more new bids to update the top bid to betwo bid increments below the reserve price and the seller is prompted tothen reduce the reserve price by one bid increment.
 12. The system ofclaim 9, wherein the source other than one of the prospective bidders isthe seller or a program of the online auction.
 13. The system of claim9, further comprising generating a virtual personality, then displaying,on the interactive presentation, at least one of the one or more newbids as originating from the virtual personality.
 14. The system ofclaim 9, further comprising enabling the seller to select at least oneof the one or more new bids.
 15. The system of claim 9, furthercomprising programmatically generating at least one of the one or morenew bids.
 16. The system of claim 9, wherein at least one of the one ormore new bids is communicated upon activation of a trigger.
 17. Thesystem of claim 16, wherein the trigger corresponds to a biddingactivity, a scheduled event, or an elapsed period of time.
 18. Anon-transitory machine-readable media containing instructions that, whenexecuted by a processor, perform operations comprising: generating aninteractive presentation corresponding to the online auction, theinteractive presentation being communicated to one or more prospectivebidders over a network; maintaining a reserve price for the onlineauction, the reserve price being (i) selected by a seller, and (ii)undisclosed to the one or more prospective bidders; while the auction isongoing, prompting the seller to reduce the reserve price without noticeto the one or more prospective bidders; and while the top bid of theauction is below the reserve price, communicating, on the interactivepresentation, a new bid that originates from a source other than one ofthe prospective bidders, the new bid updating the top bid of the auctionto be an amount such that the sum of the updated top bid and theauction's bid increment is equal to or greater than the reserve price.